Andrew Ross Sullivan in Dealbook points to some benefits Looking at some corporate tax loopholes ordinary citizens may envy to acknowledge tax day…not very comprehensive, but a quick read. Two are listed here:
U.S. PIRG highlighted a study conducted by the Government Accountability Office in 2005 that found that of 34 settlements worth more than $1 billion, 20 companies took advantage of tax rules to deduct all or part of the settlement costs
(Second) A much larger loophole involves the deduction of executive stock options by the company issuing them. Inexplicably, many of Silicon Valley’s newest star companies will be able to shelter a large portion of their profits as a result. Citizens for Tax Justice estimated late last year that a dozen technology companies, including Twitter,LinkedIn and Priceline, “stand to eliminate all income taxes on the next $11.4 billion they earn — giving these companies $4 billion in tax cuts.”
The effect is enormous and has significantly changed the bottom line — and tax rates — at some of the largest companies.